BYJU'S CoC Proposes Shailendra Ajmera As New IRP

BYJU'S CoC Proposes Shailendra Ajmera As New Insolvency Resolution Professional

SUMMARY

The edtech company’s committee of creditors (CoC) has reportedly passed a resolution to replace the incumbent IRP with Shailendra Ajmera

The NCLT called for removal of Srivastava as the IRP, deeming his conduct during the proceedings unfit and improper for an officer of the tribunal

Srivastava was accused by BYJU’S creditors Glas Trust and Aditya Birla Finance of fraud by not including them in the then CoC

After months of drama surrounding BYJU’S the then insolvency resolution professional (IRP) Pankaj Srivastava, the edtech company’s committee of creditors (CoC) has reportedly passed a resolution to replace him with Shailendra Ajmera.

According to a report by ET, the CoC submitted an application to the National Company Law Tribunal (NCLT) regarding the replacement on Monday (February 17). Glas Trust counsel Srinivasa Raghavan informed the Tribunal that the CoC voted to replace Srivastava with Ajmera during its meeting earlier in the day.

This comes about three weeks after the NCLT called for removal of Srivastava as the IRP, deeming his conduct during the proceedings unfit and improper for an officer of the tribunal.

“The conduct of the IRP in the present case has been filed with the intent to mislead the Tribunal …The above conduct on part of IRP needs to be dealt by way of disciplinary proceeding by the IBBI (Insolvency and Bankruptcy Board of India). Hence, the IBBI may conduct the necessary investigation in this matter,” the NCLT had said in its order on January 29.

Srivastava was accused by BYJU’S creditors Glas Trust and Aditya Birla Finance of fraud by not including them in the then CoC.

However, Srivastava has moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT’s order, saying he wasn’t given a fair opportunity to be heard. According to a report by NDTV Profit dated February 6, Srivastava contended that the NCLT passed the order disregarding his defense and counter-statements.

Besides, the NCLT had also called for the dissolution of the CoC formed by Srivastava in its January order, a decision that was also contested by BYJU’S directors.

Last week, the NCLT also ordered the Board of Control for Cricket in India (BCCI) to submit its application to settle its insolvency dispute with BYJU’S by filing a fresh withdrawal application with the new CoC.

The unending legal maze that BYJU’S has resulted in a rout in the valuation of the company once valued at $22 Bn, its top executives held in contempt of court in the US, former employees at its throat for getting their dues, among others.